Slide 1: Discover Asia's New Extraordinary Network
Discover Asia’s New Extraordinary Network SLC:ASX FY19 Full Year Results & Market Update Tuesday 27th August 2019 1 SINGAPORE
Slide 2: Disclaimer
Disclaimer No reliance To the maximum extent permitted by law, the information contained in this presentation is given without any liability whatsoever being accepted by Superloop Limited (Superloop) or any of its related bodies corporate or their respective directors, officers, partners, employees,
Slide 3: Agenda
Agenda Company Highlights FY19 Financial Performance Superloop Network Advantage Leveraging Superloop Assets Appendix ADELAIDE 3 Company Highlights FY19 Financial Performance Superloop Network Advantage Leveraging Superloop Assets Appendix FY19 Update
Slide 4: Company Highlights
Company Highlights Founded in 2014 to connect Asia Pacific to the cloud, with a legacy-free network capable of fulfilling the growth in demand for bandwidth Invested $256m in advanced fibre networks connecting bandwidth-intensive properties across Asia Pacific, on average 2 years into 20+ year useful li
Slide 5: Overview of Superloop's portfolio connecting Asia Pacific
Overview of Superloop’s portfolio connecting Asia Pacific 1 2 3 Asia Pacific Platforms leveraging Non-core Total Group Core Fibre Network Fibre Network CMS Fibre networks connecting Fixed Wireless (Connectivity), Cloud Managed Services key hubs in Singapore, Australia & Guest WiFi (Broadband), Home pr
Slide 6: Complete connectivity platform for Asia Pacific
Complete connectivity platform for Asia Pacific (Reporting segment) Fibre Networks in Singapore, (Connectivity) Australia & Hong Kong Fixed Wireless Network (Connectivity) across Australia CyberHound secure (Services) internet Guest WiFi platform for leisure, health & education (Broadband) campuses R
Slide 7: FY19 Operational Highlights
FY19 OPERATIONAL HIGHLIGHTS On-Net Buildings Award-winning Completed Asia Pacific network core network loop 392 Best Telco Innovation Best Fixed Wireless Provider INDIGO & AU backbone +24% YoY Best Virtual Network Operator Traffic on Network Re-launched Integrated teams +1900% portfolio Unified ~300-st
Slide 8: Invested capital in fibre network assets now live
Invested capital in fibre network assets now live(1) $256m INDIGO subsea cable $48 Year Old <2 Hong Kong Network Australia Assets Singapore $163m $82 Weighted average asset age as at 30th June 2019 $129m $69 + Years $57 $41 $68 20 Useful Life $45m $23 $33m $7 Weighted average asset useful life $5 $53
Slide 9: Revenue growth on new fibre network assets
Revenue growth on new fibre network assets $35.2m $3.1 Core Fibre Connectivity Revenues(1) Hong Kong 89% YoY Australia(2) $21.8 Core Fibre Connectivity Revenues(1) $18.6m Singapore $1.3 $12.3m 67% $0.1 $11.3 $7.6m $9.4 3 Yr CAGR (3) $10.3 $7.6 $6.0 $0.0 $2.9 FY15 FY16 FY17 FY18 FY19 (1) Core Fibre Co
Slide 10: Platforms leveraging fibre connectivity foundation
Platforms leveraging fibre connectivity foundation $61m Fixed Wireless Connectivity Total Annual Revenue provides primary and alternative secondary access to Fixed Wireless (Connectivity) $55m businesses across Australia, leveraging the fibre backbone Guest WiFi (Broadband) $21 Guest WiFi Broadband Ho
Slide 11: Legacy CMS segment declining contribution to revenue
Legacy CMS segment declining contribution to revenue Revenue Mix % excl. subsea dev. Legacy Cloud Managed Services, providing hosted/outsourced IT to Core Fibre small businesses, including Connectivity procurement of hardware and software, was Platforms: discontinued for new sales Fixed Wireless, in
Slide 12: Brand new core fibre networks across Asia Pacific
Brand new core fibre networks across Asia Pacific HONG KONG SINGAPORE FIBRE FIBRE & NETWORK DUCT NETWORK APAC AUSTRALIA SUBSEA SINGAPORE FIBRE CABLE NETWORK NETWORK SYDNEY PERTH 1 12 Company Highlights FY19 Financial Performance Superloop Network Advantage Leveraging Superloop Assets Appendix FY19 Upd
Slide 13: Fibre connectivity network footprint
Fibre connectivity network footprint Buildings Connected Fibre Kms excluding INDIGO 894km Hong Kong 392 Australia 32 671km 248 Australia Singapore 310 614km 239 28 265 221 17 301 430 Singapore 225 242 200 217 216 176 190 48 57 59 Hong Kong FY17 FY18 FY19 FY17 FY18 FY19 1 13 Company Highlights FY19 F
Slide 14: Connectivity spreading between Superloop locations
Connectivity spreading between Superloop locations Key Data Buildings Centre flows connected Annual revenue between A-B locations connected(1) FY17 FY18 FY19 (1) Not all fibre revenues connect A end and B end locations externally 1 14 Company Highlights FY19 Financial Performance Superloop Network Adv
Slide 15: FY19 Financial Performance
FY19 Financial Performance HONG KONG 15 Company Highlights FY19 Financial Performance Superloop Network Advantage Leveraging Superloop Assets Appendix FY19 Update
Slide 16: FY19 EBITDA movements on prior year
FY19 EBITDA movements on prior year $(7.0)m Impact of AASB15 $(3.4)m standard on prior year $1.6m $(9.3)m $9.1m $(5.6)m 21% lower +11% Margin $29.1m Fixed Wireless growth in FY18 margin Broadband Reported $(0.9)m Retirement of EBITDA $22.1m non-core CMS FY18 EBITDA margin H2 Opex Other margin $(5.1)
Slide 17: FY19 Gross margin performance by segment
FY19 Gross margin performance by segment Core Fibre Connectivity 2 3 Services +145% margin growth gaining 1 Fibre networks Platforms operating leverage from fibre network assets as customers are Connectivity Broadband Services onboarded Core Fibre Subsea Cable Fixed Wireless Guest Home CMS + Fixed Wi
Slide 18: FY19 Group Profit & Loss performance
FY19 Group Profit & Loss performance FY17(1) FY18(1) FY19 YoY Revenue excl. subsea development +11% YoY Total Revenue $57.7 $118.2 $119.8 +1.4% Direct costs Revenue excl. subsea dev. $54.8 $104.2 $115.8 +11% +20% YoY incl. full year impact of off-net costs from Direct Costs $(28.0) $(51.1) $(61.4) +2
Slide 19: Financial position at June 30th 2019
Financial position at June 30th 2019 Cash Flow ($m) FY18 FY19 Change Cash Flows FY18 operating cash flows Operating cash flows 37.9 5.3 (32.6) included a greater number of Investing cash flows (91.8) (53.1) 38.7 IRUs and one-off sales Financing cash flows 63.0 51.7 (11.3) Investing cash outflows lower Ne
Slide 20: Changing revenue profile towards infrastructure
Changing revenue profile towards infrastructure FY18 Revenue: $118.2m FY19 Revenue: $119.8m Connectivity revenues from brand new fibre network 4% Subsea infrastructure (+ fixed 14% Dev. wireless) already Subsea contributing 47% of group revenue Dev. 34% 21% Broadband segment, Connectivity Services 47%
Slide 21: Superloop's capital management framework
Superloop’s capital management framework Current capital structure Expected future sources & uses of capital ● Senior bank debt facilities of $120m ● Superloop’s core business is digital mature in October 2021 infrastructure in particular providing fibre Superloop’s capital connectivity to global cus
Slide 22: Superloop's Network Infrastructure Advantage
Superloop’s Network Infrastructure Advantage BRISBANE 22 Company Highlights FY19 Financial Performance Superloop Network Advantage Leveraging Superloop Assets Appendix FY19 Update
Slide 23: Over the next years the 'clouds' will be coming out of the data centre
“Over the next 2 years I believe the ‘clouds’ will be coming out of the data centre and directly to where we live, work and play. In a cloud world the ‘last mile’ is now becoming the ‘first mile’ of connection. At Superloop we believe we have built the only network that can deliver a seamless cloud-fi
Slide 24: Superloop's network advantage over legacy networks
Superloop’s network advantage over legacy networks Customer Value Superloop Advantage Legacy Networks Designed to deliver cloud experience Originally designed to deliver voice/data Cloud First to enterprise building from telephone exchanges Asia Coverage Pan Asia coverage of major strategic Limited
Slide 25: Singapore: Fibre scale economics
Singapore: Fibre scale economics REVENUE FY19 $10.3million 73% YoY growth $59m Invested Capital 15% Utilisation 3.0yrs Avg. Asset Age(1) BUILDING LEVERAGE 29yrs Avg. Asset Life FOOTPRINT 59 57 FIBRE KILOMETRES 216 48 Increm. $ per 190 customer 176 Capability to increase footprint by 400% for extra 2
Slide 26: Australia: Fibre scale economics
Australia: Fibre scale economics REVENUE FY19 $20.8million (1) 100% YoY growth $68m invested capital 12.3% Utilisation 1.0yrs Avg. Asset Age(2) BUILDING LEVERAGE 16yrs Avg. Asset Life FOOTPRINT 301 FIBRE KILOMETRES 430 225 Increm. $ per 200 customer 242 NBN National Backbone gives Superloop national
Slide 27: Hong Kong: Fibre scale economics
Hong Kong: Fibre scale economics REVENUE FY19 $3.1million 74% YoY growth $82m Invested capital 3.5% Utilisation 2.2yrs Avg. Asset Age BUILDING 32 LEVERAGE 25yrs Avg. Asset Life FOOTPRINT 28 FIBRE KILOMETRES 248 Increm. $ 239 per 221 17 customer Capability to increase footprint for lower incremental
Slide 28: INDIGO subsea cable: scale economics
INDIGO subsea cable: scale economics REVENUE FY19 N/A 3.5% Utilisation $48m Invested capital 0.1yrs Asset Age 25yrs Avg. Asset Life 9 CAPACITY ON LEVERAGE INDIGO CAPACITY ON INDIGO CENTRAL WEST (Tbps) (Tbps) Increm. $ per 4.5 Tbps Capability to extend capacity sold and delivered # Tbps FY17 FY18 FY1
Slide 29: Leveraging Superloop's Assets
Leveraging Superloop’s Assets PERTH 29 Company Highlights FY19 Financial Performance Superloop Network Advantage Leveraging Superloop Assets Appendix FY19 Update
Slide 30: Growth drivers
Growth drivers Insatiable demand for bandwidth Demand for bandwidth in Asia Pacific– Increased data consumption, growth of cloud computing, drives demand for Superloop’s connectivity infrastructure. Superloop’s infrastructure live and operational Optic fibre infrastructure – 894 km of optic fibre acros
Slide 31: Super networks for super customers in Asia Pacific
Super networks for super customers in Asia Pacific Cloud & Content Global Service Multinational Key verticals for Superloop Providers Providers Companies Content & cloud providers Global & local service providers (wholesale) Managed Service Providers requiring NBN access and Services Multinationals i
Slide 32: FY20 focus areas
FY20 focus areas Execute further Exploit unique Continue to drive Leverage core fibre master service Superloop national operational networks to extend agreements, backbone efficiencies with Superloop’s contracts and extension of NBN particular focus on platform orders to provide to Australian shorteni
Slide 33: FY20 EBITDA outlook $14-$16m reconfirmed
FY20 EBITDA outlook $14-$16m reconfirmed ● INDIGO subsea cable live & billing recurring revenues with strong pipeline of opportunities FY20 FY20 EBITDA Growth ● Recurring revenue growth from core fibre connectivity networks across Asia Pacific guidance ● Lower direct costs from removing duplication & m
Slide 34: Superloop is well positioned for future value creation
Superloop is well positioned for future value creation Nearing the end of major capital investment program Significant new sales opportunities on our owned core fibre connectivity business on a strong growth trajectory Our on-net footprint in Australia and Asia Pacific is positioned to take advantage o
Slide 35: Thank you Contact details
Thank you Contact details investor@superloop.com https://investors.superloop.com/Investors/ Upcoming Events Superloop Annual General Meeting, Brisbane 30th October 2019 SYDNEY 35 Company Highlights FY19 Financial Performance Superloop Network Advantage Leveraging Superloop Assets Appendix FY19 Updat
Slide 36: Appendix
Appendix Reporting Segment overview Historical Performance by sub-segment Product Information MELBOURNE 36 Company Highlights FY19 Financial Performance Superloop Network Advantage Leveraging Superloop Assets Appendix FY19 Update
Slide 37: How Superloop reports financial performance
How Superloop reports financial performance Reporting objectives are for Superloop to be easier to understand, easier to follow & easier to value Segment reporting consistent since FY2017, comprising: - Connectivity, which includes Core Fibre Connectivity (built and owned Singapore, Australia, Hong K
Slide 38: Historical financial performance by sub-segment (1/2)
Historical financial performance by sub-segment (1/2) $000 H1 FY17 H2 FY17 H1 FY18 H2 FY18 H1 FY19 H2 FY19 FY17 FY18 FY19 Connectivity Revenue Australia Fibre 4,751 4,622 6,281 4,592 5,562 16,204 9,373 10,873 21,766 Singapore Fibre 1,134 1,728 2,812 3,157 4,929 5,376 2,862 5,969 10,305 Hong Kong Fibr
Slide 39: Historical financial performance by sub-segment (2/2)
Historical financial performance by sub-segment (1/2) H1 FY17 H2 FY17 H1 FY18 H2 FY18 H1 FY19 H2 FY19 FY17 FY18 FY19 Rest of Business Revenue Guest WiFi Revenue 126 6,767 7,866 11,387 11,590 7,117 6,893 19,254 18,708 Home Broadband Revenue 0 0 1,934 5,465 8,706 8,173 0 7,399 16,878 Total Broadband Re
Slide 40: FY19 direct & indirect operating costs performance
FY19 direct & indirect operating costs performance FY18 FY19 YoY Direct Costs Up 20% year-on-year from Connectivity Direct Costs $(18.9) $(27.7) +47% acquisition networks prior to full integration & Broadband Direct Costs $(12.4) $(19.8) +60% construction rollout Services Direct Costs $(20.2) $(13.9
Slide 41: Cash flow history: sources & uses of funds
Cash flow history: sources & uses of funds $2 $48 $24 $5 Operating cash flows $38 Investing cash flows- $8 networks $5 Investing cash flows- $76 $30 business & assoc. $21 $69 $6 $68 $68 $61 Net Borrowings $5 Net Equity proceeds $30 $33 $30 FY16 FY17 FY18 FY19 FY16 FY17 FY18 FY19 Sources of funds Use of
Slide 42: Superloop fibre product catalogue
Superloop fibre product catalogue Dark Fibre Wavelength Internet Ethernet IP WAN Superloop Dark Fibre Superloop Wavelength Superloop Internet offers Superloop’s Ethernet is a Superloop IP WAN offers delivers high offers a highly secure, high performing, secure point to point solution dedicated, priva
Slide 43: Recognition for Superloop's innovative platforms
Recognition for Superloop’s innovative platforms Best Telco Innovation "The judges were impressed by Superloop Home Broadband's work on Project Best Fixed Wireless Provider Rostrevor. They admired the company's Doing Business in Asia / 3ys in a row long-term commitment to ensuring more Product Innov
Slide 44: Thank you Contact details
Thank you Contact details investor@superloop.com https://investors.superloop.com/Investors/ Upcoming Events Superloop Annual General Meeting, Brisbane 30th October 2019 SYDNEY 44 Company Highlights FY19 Financial Performance Superloop Network Advantage Leveraging Superloop Assets Appendix FY19 Updat